Bill Cara

Cara Community GSM 50: Alamos Gold

Alamos Gold (TSX:AGI) (NYSE: AGE) reviewed 10-02-2020

Market Cap:      $3.46 B (USD)

Share Price:       $8.89 (USD)

Shares outstanding: 391,0076,000

Cash:    $201.3 M (USD) as of 30 June 2020

Debt: $100 M (USD) drawn on credit facility as of 30 June 2020

Current operations: Yes

Insider holdings: Low

Institutional: Significant

Website: alamosgold.com

Investor Presentations: https://www.alamosgold.com/investors/default.aspx#corporate-presentations

President, CEO & Director: John A. McCluskey

HQs: Toronto, Canada

Large portfolio of properties, three in production, four development and 20+ exploration properties

Operates in Canada and Mexico

Principal mines: Young-Davidson (Canada), Island Gold (Canada), Mulatos (Mexico) – 100% owned

Underground (Island Gold) and open-pit (Mulatos) mining

Thru 1H (six months) of 2020, total 189,000 oz gold produced, sold at an average $1626 (USD)

AISC of $1276 (USD) was temporarily higher due to costs of advanced mine tie-in at Young-Davidson (lower & upper) and COVID-19 disruptions at Island Gold and Mulatos. The company expects this to decrease significantly in 2nd Half of 2020

Stellar balance sheet

22 M oz in resources, guiding towards 800,000 – 1 M oz annual production

One caution flag: significant future growth located in Turkey, est. 350,000 oz. (Kirazli, Agi Dagi, and Camyurt)

Bottom line:

  • Emerging major
  • Consistent personal holding with portfolio weighting of +8.7%
  • Adding to positions at current prices